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Fund Spy

Will China Come in for a Hard or Soft Landing?

Prominent fund managers worry about a Chinese economic slowdown, not a meltdown.

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Many issues have been causing concern for global investors over the past few months. Front and center is the never-ending European debt crisis. The situation in Greece is not improving, and lately investors have been dumping the bonds of even those countries previously considered to be sheltered from the storm, such as France. In this climate, China's slowing pace of growth has not been grabbing as many headlines. But it remains a major issue for managers trying to position their portfolios.

Even managers who don't focus exclusively on Asia say they must take into account their outlook for China's economy because of the impact that country's governmental policies and corporate actions have on stocks, bonds, and currencies around the world. No manager can think about the major resource companies in Brazil, Australia, or Canada, for example, without at least trying to gauge where Chinese demand for those commodities is heading.

Gregg Wolper does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.